1. Data Resource Management
Chapter 5
Data Resource Management
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives
Explain the business value of implementing data resource management processes and technologies in an organization
Outline the advantages of a database management approach to managing the data resources of a business, compared to a file processing approach
Explain how database management software helps business professionals and supports the operations and management of a business
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3. Provide examples to illustrate the following concepts
Learning Objectives
Provide examples to illustrate the following concepts
Major types of databases
Data warehouses and data mining
Logical data elements
Fundamental database structures
Database development
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4. Case 1: Cogent Communications, Intel, and Others
IT integration and adoption issues can make or break merger and acquisition activities.
Experts and IT managers agree that companies will feel the full impact of the merger and acquisition frenzy directly in their data centers.
Companies that have data centers where the employees hold all the knowledge suffer greatly when, after a merger or acquisition, those people are let go.
It is important to document the knowledge from those people and figure out how to make the processes work with only a handful of employees.
Companies should have good information about what goes on in the data center in terms of systems and how they interact with each other and interface with the business.
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5. Case Study Questions
Place yourself in the role of a manager at a company undergoing a merge or acquisition. What would be the most important things customers would expect from you while still in that process? What role would IT play in meeting those expectations? Provide at least three examples.
Focus on what Andi Mann in the case calls “tribal knowledge.” What do you think he means by that, and why is it so important to this process? What strategies would you suggest for companies that are faced with the extensive presence of this issue in an acquired organization? Develop some specific recommendations.
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6. Case Study Questions
Most of the discussion on the case focused on hardware and software issues. However, these are essentially enablers for underlying business processes developed by each of the companies involved. What different alternatives do companies have for merging their business processes, and what role would IT play in supporting those activities? Pay particular attention to data management and governance issues.
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7. Logical Data Elements
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8. Logical Data Elements Character Field or data item Record
A single alphabetic, numeric, or other symbol
Field or data item
Represents an attribute (characteristic or quality) of some entity (object, person, place, event)
Examples: salary, job title
Record
Grouping of all the fields used to describe the attributes of an entity
Example: payroll record with name, SSN, pay rate
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9. File or table Database Logical Data Elements
A group of related records
Database
An integrated collection of logically related data elements
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10. Electric Utility Database
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11. Common database structures…
Hierarchical
Network
Relational
Object-oriented
Multi-dimensional
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12. Hierarchical Structure
Early DBMS structure
Records arranged in tree-like structure
Relationships are one-to-many
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13. Used in some mainframe DBMS packages Many-to-many relationships
Network Structure
Used in some mainframe DBMS packages
Many-to-many relationships
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14. Relational Structure Most widely used structure
Data elements are stored in tables
Row represents a record; column is a field
Can relate data in one file with data in another, if both files share a common data element
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15. Relational Operations
Select
Create a subset of records that meet a stated criterion
Example: employees earning more than $30,000
Join
Combine two or more tables temporarily
Looks like one big table
Project
Create a subset of columns in a table
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16. Multidimensional Structure
Variation of relational model
Uses multidimensional structures to organize data
Data elements are viewed as being in cubes
Popular for analytical databases that support Online Analytical Processing (OLAP)
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17. Multidimensional Model
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18. Object-Oriented Structure
An object consists of
Data values describing the attributes of an entity
Operations that can be performed on the data
Encapsulation
Combine data and operations
Inheritance
New objects can be created by replicating some or all of the characteristics of parent objects
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19. Object-Oriented Structure
Source: Adapted from Ivar Jacobsen, Maria Ericsson, and Ageneta Jacobsen, The Object Advantage: Business Process
Reengineering with Object Technology (New York: ACM Press, 1995), p. 65.
1995, Association for Computing Machinery. By permission.
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20. Object-Oriented Structure
Used in object-oriented database management systems (OODBMS)
Supports complex data types more efficiently than relational databases
Examples: graphic images, video clips, web pages
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21. Evaluation of Database Structures
Hierarchical
Works for structured, routine transactions
Can’t handle many-to-many relationship
Network
More flexible than hierarchical
Unable to handle ad hoc requests
Relational
Easily responds to ad hoc requests
Easier to work with and maintain
Not as efficient/quick as hierarchical or network
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22. Database Administrator (DBA)
Database Development
Database Administrator (DBA)
In charge of enterprise database development
Improves the integrity and security of organizational databases
Uses Data Definition Language (DDL) to develop and specify data contents, relationships, and structure
Stores these specifications in a data dictionary or a metadata repository
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23. It contains information on..
Data Dictionary
A data dictionary
Contains data about data (metadata)
Relies on specialized software component to manage a database of data definitions
It contains information on..
The names and descriptions of all types of data records and their interrelationships
Requirements for end users’ access and use of application programs
Database maintenance
Security
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24. Database Development
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25. Database development is a top-down process
Data Planning Process
Database development is a top-down process
Develop an enterprise model that defines the basic business process of the enterprise
Define the information needs of end users in a business process
Identify the key data elements that are needed to perform specific business activities (entity relationship diagrams)
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26. Entity Relationship Diagram
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27. Database Design Process
Data relationships are represented in a data model that supports a business process
This model is the schema or subschema on which to base…
The physical design of the database
The development of application programs to support business processes
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28. Database Design Process
Logical Design
Schema - overall logical view of relationships
Subschema - logical view for specific end users
Data models for DBMS
Physical Design
How data are to be physically stored and accessed on storage devices
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29. Logical and Physical Database Views
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30. Data Resource Management
Data resource management is a managerial activity
Uses data management, data warehousing, and other IS technologies
Manages data resources to meet the information needs of business stakeholders
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31. Case 2: Applebee’s, Travelocity, and Others
Apart from using data for basic business decisions such as replenishing food supplies based on how much finished product was sold daily, Applebee is developing more sophisticated analyses that looks at how well items are selling so the company can make better decisions about what to order and what products to promote.
Today organizations are extensively aggregating and mining their data to make better decisions.
Travelocity has launched a new project to help it mine almost 600,000 unstructured comments so that it can better monitor and respond to customer service issues
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32. Case Study Questions
What are the business benefits of taking the time and effort required to create and operate data warehouses such as those described in the case? Do you see any disadvantages? Is there any reason why all companies shouldn’t use data warehousing technology?
Applebee’s noted some of the unexpected insights obtained from analyzing data about “back-of-house” performance. Using your knowledge of how a restaurant works, what other interesting questions would you suggest to the company? Provide several specific examples.
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33. Case Study Questions
Data mining and warehousing technologies use data about past events to inform better decision-making in the future. Do you believe this stifles innovative thinking, causing companies to become too constrained by the data they are already collecting to think about unexplored opportunities? Compare and contrast both viewpoints in your answer.
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34. Types of Databases
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35. Operational Databases
Stores detailed data needed to support business processes and operations
Also called subject area databases (SADB), transaction databases, and production databases
Database examples: customer, human resource, inventory
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36. Distributed Databases
Distributed databases are copies or parts of databases stored on servers at multiple locations
Improves database performance at worksites
Advantages
Protection of valuable data
Data can be distributed into smaller databases
Each location has control of its local data
All locations can access any data, any where
Disadvantages
Maintaining data accuracy
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37. Distributed Databases
Replication
Look at each distributed database and find changes
Apply changes to each distributed database
Very complex
Duplication
One database is master
Duplicate the master after hours, in all locations
Easier to accomplish
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38. External Databases
Databases available for a fee from commercial online services, or free from the Web
Examples: hypermedia databases, statistical databases, bibliographic and full text databases
Search engines like Google or Yahoo are external databases
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39. A hypermedia database contains
Hypermedia Databases
A hypermedia database contains
Hyperlinked pages of multimedia
Interrelated hypermedia page elements, rather than interrelated data records
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40. Components of Web-Based System
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41. Data Warehouses
Stores static data that has been extracted from other databases in an organization
Central source of data that has been cleaned, transformed, and cataloged
Data is used for data mining, analytical processing, analysis, research, decision support
Data warehouses may be divided into data marts
Subsets of data that focus on specific aspects of a company (department or business process)
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42. Data Warehouse Components
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43. Applications and Data Marts
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44. Data Mining
Data in data warehouses are analyzed to reveal hidden patterns and trends
Market-basket analysis to identify new product bundles
Find root cause of qualify or manufacturing problems
Prevent customer attrition
Acquire new customers
Cross-sell to existing customers
Profile customers with more accuracy
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45. Traditional File Processing
Data are organized, stored, and processed in independent files
Each business application designed to use specialized data files containing specific types of data records
Problems
Data redundancy
Lack of data integration
Data dependence (files, storage devices, software)
Lack of data integrity or standardization
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46. Traditional File Processing
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47. Database Management Approach
The foundation of modern methods of managing organizational data
Consolidates data records formerly in separate files into databases
Data can be accessed by many different application programs
A database management system (DBMS) is the software interface between users and databases
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48. Database Management Approach
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49. Database Management System
In mainframe and server computer systems, a software package that is used to…
Create new databases and database applications
Maintain the quality of the data in an organization’s databases
Use the databases of an organization to provide the information needed by end users
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50. Common DBMS Software Components
Database definition
Language and graphical tools to define entities, relationships, integrity constraints, and authorization rights
Nonprocedural access
Language and graphical tools to access data without complicated coding
Application development
Graphical tools to develop menus, data entry forms, and reports
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51. Common DBMS Software Components
Procedural language interface
Language that combines nonprocedural access with full capabilities of a programming language
Transaction processing
Control mechanism prevents interference from simultaneous users and recovers lost data after a failure
Database tuning
Tools to monitor, improve database performance
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52. Database Management System
Database Development
Defining and organizing the content, relationships, and structure of the data needed to build a database
Database Application Development
Using DBMS to create prototypes of queries, forms, reports, Web pages
Database Maintenance
Using transaction processing systems and other tools to add, delete, update, and correct data
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53. DBMS Major Functions
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54. Database Interrogation
End users use a DBMS query feature or report generator
Response is video display or printed report
No programming is required
Query language
Immediate response to ad hoc data requests
Report generator
Quickly specify a format for information you want to present as a report
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55. Database Interrogation
SQL Queries
Structured, international standard query language found in many DBMS packages
Query form is SELECT…FROM…WHERE…
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56. Database Interrogation
Boolean Logic
Developed by George Boole in the mid-1800s
Used to refine searches to specific information
Has three logical operators: AND, OR, NOT
Example
Cats OR felines AND NOT dogs OR Broadway
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57. Database Interrogation
Graphical and Natural Queries
It is difficult to correctly phrase SQL and other database language search queries
Most DBMS packages offer easier-to-use, point-and-click methods
Translates queries into SQL commands
Natural language query statements are similar to conversational English
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58. Graphical Query Wizard
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59. Database Maintenance
Accomplished by transaction processing systems and other applications, with the support of the DBMS
Done to reflect new business transactions and other events
Updating and correcting data, such as customer addresses
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60. Application Development
Use DBMS software development tools to develop custom application programs
Not necessary to develop detailed data-handling procedures using conventional programming languages
Can include data manipulation language (DML) statements that call on the DBMS to perform necessary data handling
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61. Case 3: Amazon, eBay, and Google
Amazon’s data vault
Product descriptions
Prices
Sales rankings
Customer reviews
Inventory figures
Countless other layers of content
Took 10 years and a billion dollars to build
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62. Case 3: Amazon, eBay, and Google
Amazon opened its data vault in 2002
65,000 developers, businesses, and entrepreneurs have tapped into it
Many have become ambitious business partners
eBay opened its $3 billion databases in 2003
15,000 developers and others have registered to use it and to access software features
1,000 new applications have appeared
41 percent of eBay’s listings are uploaded to the site using these resources
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63. Case 3: Amazon, eBay, and Google
Google recently unlocked access to its desktop and paid-search products
Dozens of Google-driven services cropped up
Developers can grab 1,000 search results a day for free; anything more requires permission
In 2005, the Ad-Words paid-search service was opened to outside applications
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64. Case Study Questions
What are the business benefits to Amazon and eBay of opening up some of their databases to developers and entrepreneurs? Do you agree with this strategy?
What business factors are causing Google to move slowly in opening up its databases? Do you agree with its go-slow strategy?
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65. Case Study Questions
Should other companies follow Amazon and eBay’s lead and open up some of their databases to developers and others? Defend your position with an example of the risks and benefits to an actual company
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66. Case 4: Emerson & Sanofi, Data Stewards
Dedicated to establishing and maintaining the quality of data
Need business, technology, and diplomatic skills
Focus on data content
Judgment is a big part of the job
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67. Why is the role of a data steward considered to be innovative?
Case Study Questions
Why is the role of a data steward considered to be innovative?
What are the business benefits associated with the data steward program at Emerson?
How does effective data resource management contribute to the strategic goals of an organization?
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